SUPERVISION OF NETHERLANDS ANTILLES COMPANY PENSION FUNDS
Supervision only if pension promise has been made
Under Netherlands Antilles National Ordinance on company pension funds 1985 (‘Landsverordening ondernemingspensioenfondsen’; the “NOP”), company pension funds are subject to supervision by the Netherlands Antilles Central Bank.
The NOP is based upon the principle that if an employer makes a pension promise, it can fulfill this pension promise in a number of ways. For example, it can arrange a company pension fund specifically for the company itself or can become a member of an industry-wide pension fund.
The NOP and supervision by the Central Bank only apply if a pension promise has been made. Based upon the NOP, the Central Bank aims to procure that a pension promise, once made, is actually fulfilled and the NOP contains a number of provisions that seek to achieve this. Supervision by the Central Bank is primarily focused on the financial and actuarial structure of the funds and the contents of their rules and regulations.
The NOP is hybrid in nature, because it lays down substantive provisions regarding the contents of the pension promise as well as prudential provisions. The prudential provisions can be divided into provisions relating to the organization of the pension sector, with its many participants and interested parties, and provisions relating to its supervision.
A pension fund is obliged to have legal personality. The board has to notify the Minister for Employment and Social Affairs and the Central Bank within three months after establishment. The deed of incorporation, its internal rules and the pension fund agreement should be attached to this notification. The articles of association and the internal rules should reflect the rules laid down in the NOP. The managing board should consist of 50% representatives of the employer and 50% representatives of the employees. Furthermore, the NOP provides for rules relating to payment by the employer of the employee’s (own) part of the pension premium on behalf of the employee.
Karel Frielink
Curacao-based Attorney (lawyer) / Partner
